"The test of the Hoveizeh cruise missile was carried out successfully at a range of 1,200 kilometres (840 miles) and accurately hit the set target," Defence Minister Amir Hatami said, quoted on state television which broadcast footage of its launch.

"It can be ready in the shortest possible time and flies at a very low altitude," he said.

Hatami described the Hoveizeh as the "long arm of the Islamic Republic of Iran" in defending itself.

It is part of the Soumar group of cruise missile, first unveiled in 2015 with a range of 700 kilometres, according to the minister.

The Hoveizeh unveiling was part of an arms exhibition titled "40 years of defensive achievements" held in Tehran.

Friday marked the beginning of 10 days of celebrations of the Islamic revolution that ousted the pro-Western shah.

Iran has voluntarily limited the range of its missiles to 2,000 kilometres (1,250 miles), sufficient to reach Israel and Western bases in the Middle East.

But Washington and its allies have accused Tehran of pursuing enhanced missile capabilities that also threaten Europe.

Iran has "no intention of increasing the range" of its missiles, the country's Supreme National Security Council secretary, Admiral Ali Shamkhani, said Tuesday.